Uptick Volume

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DEFINITION of 'Uptick Volume'

The volume of shares of a security that are traded when the price is increasing. Uptick volume is used in trading strategies based on trends, with the difference between uptick volume and downtick volume referred to as the money flow. Stocks with positive momentum will trade at an increasing uptick volume as current trading prices are above the average price.

INVESTOPEDIA EXPLAINS 'Uptick Volume'

Uptick volume can be used in momentum trading or to be analyzed as resistance bands. In a scenario in which ticks are increasing, investors may look at a security as having more buyer demand than the number of shares being sold. This is a bullish strategy that depends on the continuous rise in prices.

RELATED TERMS
  1. Uptick

    A transaction for a financial instrument that occurs at a higher ...
  2. Zero Uptick

    A transaction executed at the same price as the trade immediately ...
  3. Volume

    The number of shares or contracts traded in a security or an ...
  4. Net Volume

    A term in technical analysis that represents a security's uptick ...
  5. Downtick

    A transaction on an exchange that occurs at a price below the ...
  6. Up Volume

    A stock volume that closes at a price higher than the previous ...
RELATED FAQS
  1. Why is the Uptick Volume important for traders and analysts?

    Uptick volume is important to traders and analysts because it helps calculate net volume and spot lines of resistance. In ... Read Full Answer >>
  2. What is the Uptick Volume formula and how is it calculated?

    Uptick volume measures the volume of trades that occur when the price of an underlying asset is increasing. This measurement ... Read Full Answer >>
  3. What is a common strategy traders implement when using the Uptick Volume?

    Uptick volume is used to identify trends and momentum of a stock to the upside. It shows how much demand there is for a stock ... Read Full Answer >>
  4. What is a common strategy traders implement when using the Volatility Ratio?

    The volatility ratio is a tool that a trader can use to identify whether the price of a stock has been trading out of its ... Read Full Answer >>
  5. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  6. How do you know where on the oscillator you should make a purchase or sale?

    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
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